MGM Resorts suddenly withdrew from the southern New York casino project this week, retracting its $2.3 billion plan to renovate the Yonkers Empire City Racetrack Casino, citing continuously declining economic returns during the approval process. Currently, only three bidders—Bally's, Metropolitan Park, and Resorts World—have submitted revised bids to the state government, with construction costs estimated at $4 billion, $8 billion, and $5.5 billion respectively. The New York Gaming Facility Location Board (GFLB) is reviewing the bids based on financial, environmental, and labor standards, and is expected to submit license recommendations by December 1, with state regulatory agencies possibly issuing up to three licenses by the end of the year. MGM is the third major operator to withdraw in 2025, following Wynn and Las Vegas Sands, with common reasons involving economic returns, iGaming legalization risks, and political controversies.
Bidding Status and Project Overview
Currently, only three bidders are participating in the competition for a casino license in southern New York: Bally's ($4 billion), Metropolitan Park ($8 billion), and Resorts World ($5.5 billion). Resorts World, as an existing racetrack casino, plans to open in July 2026, while the other two are greenfield projects requiring longer construction and profitability timelines.
Bally's has not provided a timeline, and Metropolitan Park only stated that construction will begin in January. All three submitted revised proposals this week.
Reasons for MGM's Withdrawal
MGM suddenly withdrew from its $2.3 billion Yonkers Empire City renovation project, citing "declining economic returns under a newly defined competitive landscape." Its proposal lacked facilities such as a resort hotel and public parks, ranked lowest in terms of capital investment scale, and did not submit a report to the community advisory committee.
The company emphasized that its bid was based on obtaining a 30-year commercial casino license rather than the actual eligible 15 years, and competition concerns also apply to the remaining bidders concentrated within 30 miles.
Regulatory Process and Timeline
The New York Gaming Facility Location Board (GFLB) is responsible for reviewing bids based on financial, environmental, and labor standards, and must submit license recommendations to the state government by December 1. The state regulatory agency may then choose to issue up to three licenses by the end of the year.
The GFLB consists of five members, mostly newly appointed and without gaming industry experience, aimed at ensuring neutrality. The next meeting is scheduled for October 22.
Tax Rates and Licensing Structure
The state government allows bidders to set their own tax rates, with a minimum of 25% for slot machines and 10% for other gaming. Bally's proposal tax rates are 30% for slot machines/10% for tables, Metropolitan Park at 25%/10%, and Resorts World up to 56%/30%.
The licensing period depends on the investment amount: less than $1.5 billion for 10 years, $1.5-5 billion for 15 years, $5-10 billion for 20 years, and over $10 billion can obtain a 30-year license. Among the current proposals, Bally's can obtain a 15-year license, while the other two can obtain a 20-year license.
Economic Risks and Financing Challenges
Bidders face challenges of rising construction costs, inflation, and uncertain construction timelines. Bally's leveraged business model is questioned, relying on GLPI financing, but the latter stated "no formal agreement has been reached"; Genting Group is adjusting its balance sheet; Metropolitan Park owner Steve Cohen's substantial personal assets are considered the safest.
Lending institutions consider current cash flow forecasts overly aggressive, actual achievement may take four to five years, and costs may continue to increase.
Political Controversies and Competitive Environment
All bids involve political controversies. Bally's and Metropolitan Park have sparked city council maneuvers and bypassing local councilor support controversies. MGM pointed out that the remaining three bidders' high geographical concentration may increase competitive pressure.
Previously, Wynn withdrew due to "ongoing political opposition," and Sands Group was concerned about the impact of iGaming legalization on physical returns, showing the significant impact of political and policy environments on projects.
Industry Background and Exit Trends
MGM is the third major operator to withdraw from the New York casino competition in 2025, following Wynn and Las Vegas Sands. The reasons for withdrawal vary, but all reflect the economic, policy, and execution risks faced by New York casino projects.
After withdrawing, MGM announced the sale of the operating rights of Northfield Park in Ohio for $546 million, emphasizing a focus on digital business and international expansion, but denying plans to sell the Empire City property.
